The mirror trading method allows traders in financial market

Financial market

In economics, a financial market is a mechanism that allows people and entities to buy and sell financial securities , commodities , and other fungible items of value at low transaction costs and at prices that reflect supply and demand.Both general markets and...

s to select a trading strategy

Trading strategy

In finance, a trading strategy is a predefined set of rules for making trading decisions.Traders, investment firms and fund managers use a trading strategy to help make wiser investment decisions and help eliminate the emotional aspect of trading. A trading strategy is governed by a set of rules...

 and to automatically “mirror” the trades executed by the selected strategies in the trader's brokerage account.

Traders can select strategies that match their personal trading preferences, such as risk

Risk

Risk is the potential that a chosen action or activity will lead to a loss . The notion implies that a choice having an influence on the outcome exists . Potential losses themselves may also be called "risks"...

 tolerance and past profits

Profit (accounting)

In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...

. Once a strategy

Strategy

Strategy, a word of military origin, refers to a plan of action designed to achieve a particular goal. In military usage strategy is distinct from tactics, which are concerned with the conduct of an engagement, while strategy is concerned with how different engagements are linked...

 has been selected, all the signals sent by the strategy will be automatically applied to the client

Client

Client may refer to:* Customer, someone who purchases or hires something from someone else* Client , software that accesses a remote service on another computer* The client who received patronage in ancient Rome...

’s brokerage account. No intervention is required by the client as all the account activity is controlled by the platform.

Clients may trade one or more strategies concurrently. This flexibility enables the trader to diversify their risk while maintaining complete trading control of their account at all times.

History

Mirror trading is an evolution

Evolution

Evolution is any change across successive generations in the heritable characteristics of biological populations. Evolutionary processes give rise to diversity at every level of biological organisation, including species, individual organisms and molecules such as DNA and proteins.Life on Earth...

 of automated trading, also known as algorithmic trading

Algorithmic trading

In electronic financial markets, algorithmic trading or automated trading, also known as algo trading, black-box trading or robo trading, is the use of electronic platforms for entering trading orders with an algorithm deciding on aspects of the order such as the timing, price, or quantity of the...

. Automated trading in general has witnessed exponential growth

Exponential growth

Exponential growth occurs when the growth rate of a mathematical function is proportional to the function's current value...

 over the last few years. This development has been widely accepted by clients at the retail

Retail

Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...

 level as it helps overcome the traditional barriers to successful trading.

Mirror Trading is a method in forex trading that enables traders to ‘mirror’ strategies developed by other experienced Forex traders

Mirror trading has certain distinctions from program trading

Program trading

Program trading is a generic term used to describe a type of trading in securities, usually consisting of baskets of fifteen stocks or more that are executed by a computer program simultaneously based on predetermined conditions...

. Mirror trading is a concept that allows traders to copy or track trades from other traders. These other traders can come in the form of system developers, manual traders or financial institution

Financial institution

In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...

s.
Mirror trading allows a trader to choose strategies. The trades are delivered and executed automatically with entry and exit points on multiple currency pair

Currency pair

A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. The currency that is used as the reference is called the counter currency or quote currency and the currency that is quoted in relation is called the base...

s. Clients have ability to click and choose from a vast supply of trading strategies.